8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 27, 2008

SONIC SOLUTIONS

(Exact name of registrant as specified in its charter)

California	23190	93-0925818
(State or other jurisdiction of organization)	(Commission File Number)	(I.R.S. Employer Identification No.)

101 Rowland Way, Suite 110 Novato, CA	94945
(Address of principal executive offices)	(Zip Code)

Registrant's telephone number, including area code: (415) 893-8000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.05.  Costs Associated With Exit or Disposal Activities.

On October 27, 2008, Sonic Solutions (the “Company”) began implementing a restructuring plan to consolidate its Advanced Technology Group and Roxio® division into a single business unit, unify its original equipment manufacturer (“OEM”) licensing efforts, eliminate organizational redundancies, improve product design methods and processes, and reduce its workforce by approximately 100 positions by the end of the calendar year. To meet these goals, the Company expects to incur a charge of approximately $2.5 million consisting of approximately $1.3 million relating to one-time termination benefits and approximately $1.2 million relating to building and office consolidations. As a result of these actions, the Company expects to reduce annual costs and operating expenses by approximately $14 million.

Forward Looking Statements

This Current Report on Form 8-K and press release announcing the restructuring plan (the “Press Release”), furnished as Exhibit 99.1 to this Current Report may contain forward-looking statements, which are subject to risks and uncertainties, including without limitation: (1) the Company's ability to control costs and expenses, (2) the effectiveness of recent changes to the management and organization structure, (3) the Company's ability to drive process and sales improvements, (4) the impact of adverse changes in general socioeconomic conditions, (5) the Company's ability to generate sales and margin growth through expanded service offerings, and (6) the Company's ability to continue to generate strong sales growth in key product categories and through its direct sales channel. Discussion of additional factors that could cause actual results to differ materially from management's projections, forecasts, estimates and expectations is set forth under Management's Discussion and Analysis of Results of Operations and Financial Condition in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2008 (the “Annual Report”), its Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2008, and in the Company's other SEC filings. A copy of the Annual Report, Quarterly report and other SEC filings are available on the Company's Web site at http://www.sonic.com. The forward-looking statements disclosed in this Current Report on Form 8-K and the Press Release are made as of October 30, 2008, based on information available to the Company as of that date. Except as required by law, the Company does not assume any obligation to update or revise these forward-looking statements to reflect new events or circumstances.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.

(d) Exhibits

The following exhibit is furnished with this Current Report on Form 8-K:

Exhibit	Description
99.1	Press Release of Sonic Solutions dated October 30, 2008

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

SONIC SOLUTIONS
By:	/s/ David C. Habiger
	Name: David C. Habiger
	Title:   President and Chief Executive Officer
	(Principal Executive Officer)

Date: October 31, 2008

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EX-99.1

News Release

Sonic Announces Corporate Restructuring

Expects to Reduce Expenses by $14 Million a Year

Novato, California, October 30, 2008 - Sonic Solutions^® (NASDAQ: SNIC) today announced a restructuring intended to improve execution and financial performance. The restructuring will result in a reduction of Sonic’s workforce as well as the consolidation of its Advanced Technology Group (“ATG”) and Roxio^® division into a single business unit. Through this combination, Sonic will unify its OEM licensing efforts, eliminate organizational redundancies, and improve product design methods and processes.

Dave Habiger, chief executive officer and president, said:  “Our goal for Sonic is to execute on an exciting, digital media-centric strategy. This restructuring enables us to focus on specific growth opportunities and improve our near-term profitability.”

Under the restructuring, Sonic will reduce its employee and contractor workforce by approximately 100 positions, generating annual cost and operating expense savings of $14 million. The company expects to incur one-time severance and other related costs of $2.5 million.

An update on Sonic’s business outlook and further information concerning the restructuring will be provided during the company’s previously scheduled fiscal second quarter earnings release next Wednesday, November 5. Details about the conference call can be found on the company’s website, www.sonic.com.

About Sonic Solutions

Sonic Solutions enables the creation, management, and enjoyment of digital media content through its Hollywood to Home^™ products, services, and technologies. Sonic's products range from the advanced authoring systems used to produce Hollywood DVD and Blu-ray Disc titles to the award-winning Roxio-branded photo, video, music, and digital-media management applications and services. Sonic's patented technologies and AuthorScript^® media engine are relied upon by leading technology firms to define rich media experiences on a wide array of consumer electronics, mobile devices, set-top players, retail kiosks, and PCs. Always an innovator, Sonic has taken a leading role in helping professional and consumer markets make the successful transition to the new high-definition media formats and, through the Qflix^™ platform, Sonic is defining new models for the digital distribution of Hollywood entertainment. Sonic Solutions is headquartered in Marin County, California.

Contact Information:

Nils Erdmann, Investor Relations, 415-893-7824, nils_erdmann@sonic.com

Chris Taylor, Press Relations, 408-367-5231, chris_taylor@sonic.com

Forward Looking Statements

This press release may contain forward-looking statements, which are subject to risks and uncertainties, including without limitation: (1) the company's ability to control costs and expenses, (2) the effectiveness of recent changes to the management and organization structure, (3) the company's ability to drive process and sales improvements, (4) the possibility of adverse changes in general socioeconomic conditions, (5) the company's ability to generate sales and margin growth through expanded service offerings, and (6) the company's ability to continue to generate strong sales growth in key product categories and through its direct sales channel. Discussion of additional factors that could cause actual results to differ materially from management's projections, forecasts, estimates and expectations is set forth under Management's Discussion and Analysis of Results of Operations and Financial Condition in the Sonic Solutions Annual Report on Form 10-K for the fiscal year ended March 31, 2008, in the Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2008, and in the company's other SEC filings. A copy of the annual report is available on the company's Web site at http://www.sonic.com.

Sonic, the Sonic logo, Sonic Solutions, AuthorScript, Hollywood to Home, Qflix, and Roxio are trademarks or registered trademarks of Sonic Solutions in the United States and/or other countries. All other company or product names are trademarks of their respective owners and, in some cases, are used under license.